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Handbook of Business Procedures

7.7.1. PURCHASE OF USED EQUIPMENT

Most purchases made by the university are for new equipment. However, there may be instances when the procurement
of previously used equipment may be necessary or advantageous, such as when there is a lack of availability of new
equipment or when there are budgetary constraints. Despite the potential advantages, there are risks involved with
procurement of used equipment.

Equipment that is used includes:

refurbished equipment

used equipment supplied with the same warranty as new equipment

equipment used for a demonstration, even if the demonstration was performed for the university

A department that is considering a used equipment purchase should consult with the Purchasing Office. To find
the purchasing buyers assigned to a department, see the
UT Purchasing Centers and Buyers List.

In general, the purchase of used equipment may not be processed as a sole source purchase. Although the equipment
may have originally been available from only one source, once equipment appears on the used equipment market, a variety
of sellers may be able to provide the equipment to the university.

Used equipment purchases follow the same dollar limits that apply to new equipment purchases. For more information,
see the Handbook of Business Procedures 7.2. Authority to Obligate. The following requirements
also apply to used equipment purchases:

The vendor providing the equipment must provide a letter or signed statement guaranteeing the quality and condition
of the equipment bid.

The department must provide the following information to the purchasing buyers assigned to the department:

Justification of the requirement for used equipment versus new equipment

Statement that a departmental representative has personally examined the equipment or otherwise verified that
the equipment is in the condition described by the vendor. The statement must also document that the cost of the
used equipment warrants the risk involved.

If extenuating circumstances exist that prevent competitive bidding and the order exceeds $5,000, a
sole source justification form must be provided.

Used equipment purchases are subject to the approval of the assistant vice president and director of procurement
and payment services and the vice president and chief financial officer.